# Yield Bearing Wallet

Kitchen Layer introduces the **Yield Bearing Wallet**, a revolutionary mechanism that transforms blockchain engagement by redistributing real yield directly to users based on their on-chain active and volume-driven participation.&#x20;

This innovative model creates a fair, scalable ecosystem that fosters healthy competitiveness between chain participants, establishes a more sustainable value distribution mechanism, and moves beyond vaporware token emissions to create genuine economic alignment between platform contribution and user rewards.

The Kitchen Layer Sequencer generates revenue through two primary mechanisms:

1. **Sequencer Fees:** A standard transaction fee applied to all on-chain interaction, ensuring consistent revenue generation.
2. **Priority Fees:** User-configurable fees enabling accelerated transaction processing, critical for time-sensitive operations like token sniping, high-frequency trading, liquidations, and arbitrage.

Additionally, Kitchen native applications generate revenue through their respective fee or monetization structures, to be redistributed.

Revenue Distribution Model:

* A dynamic operational cost threshold is retained by Kitchen Layer, operational costs includes:&#x20;
  * Infrastructure maintenance
  * Data push to L1
  * Node operation
  * Security monitoring
  * Network upgrades
  * Technical support
* Remaining **revenue is distributed to active wallets via a dynamic sharing mechanism, detailed down below**

This approach transforms the chain's economic model by:

* Generating passive income for users
* Creating a yield-bearing ecosystem across all asset types, including NFTs
* Preserving and leveraging historical volume data for revenue allocation
* Providing a mechanism that can offset trading losses

The model incentivizes sustained platform engagement by converting every on-chain interaction into a  value-generation event.

### Revenue Sharing:

Kitchen Layer introduces a groundbreaking mechanism centered on Soulbound NFTs—unique, non-transferable digital assets with a strict one-edition-per-address minting policy.

These Soulbound NFTs serve as dynamic on-chain identity markers, capturing comprehensive wallet characteristics:

Metadata Composition:

* Detailed asset holdings across the wallet
* Granular historical transaction volumes for each individual asset
* Comprehensive activity profile representing user engagement

Revenue Sharing Mechanism:

* Revenue distribution occurs through linear streaming over time
* Wallet's revenue share dynamically computed during each on-chain interaction
* Allocation determined by the comprehensive metadata embedded in the Soulbound NFT

The core improvement to existing revenue sharing mechanisms lies in creating a transparent, activity-driven value distribution model that directly correlates user engagement with potential rewards. By tying revenue sharing to non-transferable, wallet-specific NFTs, Kitchen Layer establishes a fair and measurable ecosystem where participation generates tangible economic value.

### The New Airdrop Meta:

Kitchen Layer's native token launch will eventually represent a pivotal moment in the project's ecosystem, with a fundamental commitment to community-centric distribution. A substantial portion of the total token supply will be allocated directly to active users, breaking away from traditional token launch models.

The groundbreaking airdrop mechanism is intricately tied to the Soulbound NFTs used in revenue sharing. These NFTs will serve as comprehensive activity passports, capturing on-chain interactions, transaction volumes, and user engagement. Future documentation will dlve into the sophisticated scoring system, detailing action weights, activity boosters, and reward multipliers that transform token distribution into a merit-based, community-rewarding mechanism.
